https://www.taxtmi.com/caselaws?id=25318 Penalty for default in payment of income-tax under section 46(1) of the 1922 Act and section 221(1) of the 1961 Act is not automatic and depends on the Income-tax Officer's discretion, exercised on the facts and circumstances. Compliance with a Tax Recovery Officer's instalment order was a relevant circumstance, and the Tribunal was entitled to treat that compliance as sufficient to conclude that penalty was not warranted. The Tribunal's cancellation of the penalty was therefore sustainable on the broader discretionary and factual basis, without needing to decide whether the assessee was technically a defaulter. en-us Wed, 29 Jul 1987 00:00:00 +0530 Wed, 27 Jan 2010 18:28:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25318 Penalty for default in payment of income-tax under section 46(1) of the 1922 Act and section 221(1) of the 1961 Act is not automatic and depends on the Income-tax Officer's discretion, exercised on the facts and circumstances. Compliance with a Tax Recovery Officer's instalment order was a relevant circumstance, and the Tribunal was entitled to treat that compliance as sufficient to conclude that penalty was not warranted. The Tribunal's cancellation of the penalty was therefore sustainable on the broader discretionary and factual basis, without needing to decide whether the assessee was technically a defaulter. Case-Laws Income Tax Wed, 29 Jul 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25318